Freddie Mac predicts 9% drop in single-family home mortgages

In this April 13, 2015 file photo, a sign advertises homes for sale in Las Vegas. Freddie Mac, the mortgage company, predicts a decline in the amount of single-home mortgages taken out. (AP Photo/John Locher, File) less

In this April 13, 2015 file photo, a sign advertises homes for sale in Las Vegas. Freddie Mac, the mortgage company, predicts a decline in the amount of single-home mortgages taken out. (AP Photo/John Locher, ... more

Photo: John Locher, STF

Photo: John Locher, STF

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In this April 13, 2015 file photo, a sign advertises homes for sale in Las Vegas. Freddie Mac, the mortgage company, predicts a decline in the amount of single-home mortgages taken out. (AP Photo/John Locher, File) less

In this April 13, 2015 file photo, a sign advertises homes for sale in Las Vegas. Freddie Mac, the mortgage company, predicts a decline in the amount of single-home mortgages taken out. (AP Photo/John Locher, ... more

Photo: John Locher, STF

Freddie Mac predicts 9% drop in single-family home mortgages

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By the end of the year, Americans will have borrowed 8.9 percent less for single-family homes than the year before, according to a forecast by Freddie Mac.

The forecast, released this week, predicts that mortgage originations will decrease and home price appreciation will slow in upcoming years.

The mortgage-finance company said it believed 2018 will see $1.65 trillion in loans, down from $1.81 trillion in 2017. The forecast predicts that number will stay flat through 2019 and fall again to $1.60 trillion in 2020.

Part of the reason for the drop is a decrease in the number of loans that are being refinanced as mortgage rates increase. Thirty-seven percent of loan originations in 2017 were refinancing other loans; that share is on track to fall by almost a quarter by the end of 2018.

At the same time, the forecast predicts home price appreciation to slow from the 7.2 percent gain seen in 2017 to 5.4 percent in 2018 and 4.6 percent in 2019.